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Financial development and economic growth in Vietnam
Journal article   Peer reviewed

Financial development and economic growth in Vietnam

Sajid Anwar and L P Nguyen
Journal of Economics and Finance, Vol.35(3), pp.348-360
2011
url
https://doi.org/10.1007/s12197-009-9106-2View
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Abstract

financial development economic growth globalization Vietnam
By making use of a panel dataset that covers 61 provinces of Vietnam over the period 1997 to 2006, this paper examines the link between financial development and economic growth. Our analysis, which is based on endogenous growth theory, reveals that financial development has contributed to economic growth in Vietnam. We find that high ratio of credit to Gross Provincial Product (GPP) has accelerated economic growth in Vietnam. We also found a strong positive link between financial development and economic growth when alternative measures of financial development were used. The impact of foreign direct investment on economic growth will be stronger if more resources are invested in financial market development.

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